bank rates

6-Month CD Rates Roundup: Top National Deal Pays 1.37%, Local Pays 1.74%

A single bank, First Internet Bank of Indiana, leads all competitors. It’s paying 1.37% APY on nationally available 6-month certificates.

That’s more than a tenth of a percentage than the runner-up, Pacific National Bank, is paying.

As always, shopping locally may earn you more from a credit union or community bank. We know of at least one local deal that’s out-paying the national leader, offering 1.74% APY.

The top national yields

The top 6-month CD rates have inched up around a quarter of a percentage point since this time last year, when the most you could have earned was around 1.05% APY.

Now you’ll find eight banks offering 1.05% APY or better or 6-month certificates of deposit. And five banks are offering rates of 1.20% APY or above.

Still, we’d love to see these short-term rates move up even more.

But while we’re waiting to see better rates, the deal from First Internet Bank of Indiana is worth a look. It’s charging a modest minimum of $1,000 to earn the top rate.

Pacific National Bank and Luana Savings Bank are also worth consideration, although Luana is charging a hefty $25,000 minimum, while Pacific National only requires $1,000 to open an account.

Top National 6-month CDs

Bank Yield Minimum Deposit
First Internet Bank of Indiana 1.37% $1,000
Pacific National Bank 1.25% $1,000
Luana Savings Bank 1.25% $25,000
M.Y. Safra Bank 1.21% $5,000
Nationwide Bank 1.20% $500
Virtual Bank 1.11% $10,000
Live Oak Bank 1.05% $2,500
BAC Florida Bank 1.05% $1,500
Popular Direct 1.00% $10,000
AloStar Bank of Commerce 0.97% $1,000
Colorado Federal Savings Bank 0.90% $5,000
EH National Bank 0.86% $10,000
EverBank 0.85% $1,500
The Federal Savings Bank 0.80% $10,000
Giant Bank 0.75% $2,500
Bank of Internet USA 0.75% $1,000
HSBC Bank 0.75% $1,000
UmbrellaBank.com 0.71% $10,000
GS Bank 0.60% $500

Before locking into any certificate of deposit, it’s always prudent to search Bankrate’s extensive database of the best CD rates to make sure you’re getting your absolute best deal of the day.

Earn more with local deals

As our readers know, the very best rates in the country are usually from a community bank or a credit union requiring CD buyers to jump through a hoop or two.

For a 6-month term, we’re currently aware of at least one offer that outpay First Internet Bank of Indiana’s 1.37% APY, although restrictions on who may open them are somewhat limiting.

Top Local 6-Month CD Rates

Bank State APY Min Deposit
Peoples Transport Federal Credit Union New Jersey 1.74% $500
LOMTO Federal Credit Union New York 1.10% $2,000
Telco Credit Union North Carolina 1.01% $1,000
Federal Employees Credit Union Alabama 0.90% $500
Mil-Way Federal Credit Union Arkansas, Texas 1.05% $2,500

Waiting on the Fed

All of these deals are far better than what you’ll find at most banks, where the national 6-month average remains a pitiful 0.21% APY.

That’s a trivial gain from the record-low 0.14% APY we saw in June 2014.

Rewind to February 2007 and the national average return was 3.50% APY – a reasonable rate of return by most historical standards.

The huge disparity between then and now comes from the Fed’s decision to stem the economy’s bleeding by pushing short-term interest rates to record lows during the 2008 financial crisis – and tethering them there.

That chilly seven-year period finally concluded in December, when the Fed’s rate-setting committee launched what was then forecasted to be a series of small, gradual hikes over the next several years.

So when can we expect another boost?

We may see one at the Fed’s next meeting at the end of this month.

Until then, the most we can do is shop wisely and hope to see higher rates soon.

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